Question

1. channels of distribution benefit consumers by

a. making a variety of products available to them
b. lowering the prices of all consumer products
c. raising the quality of all consumer products

1. a new technology company decides to offer a high initial price for its innovative product to generate early adopter interest. this is an example of:

a. penetration pricing
b. price skimming
c. value - based pricing
d. cost - based pricing

Explanation:

For Question 19:

Distribution channels connect producers to consumers, enabling access to a range of products from different brands and manufacturers. They do not guarantee lower prices for all products (as costs can vary) nor do they directly raise product quality, which is determined by producers.

For Question 20:

Price skimming is a strategy where a high initial price is set for a new, innovative product to target early adopters willing to pay more. Penetration pricing uses low initial prices to gain market share, value-based pricing ties cost to perceived customer value, and cost-based pricing is based on production costs plus a markup.

Answer:

1. A. Making a variety of products available to them
2. B. Price skimming